OFS Credit Company, Inc. Prices Preferred Stock Offering
22 April 2021 - 7:51AM
Business Wire
OFS Credit Company, Inc. (the “Company”) (Nasdaq: OCCI, OCCIP)
today announced the pricing of an underwritten public offering of
800,000 shares of 6.125% Series C Term Preferred Stock due 2026
(the “Preferred Stock”) at a public offering price of $25.00 per
share, raising $20.0 million in gross proceeds. In addition, the
Company has granted the underwriters a 30-day option to purchase up
to an additional 120,000 shares of Preferred Stock on the same
terms and conditions to cover overallotments, if any. The closing
of the transaction is subject to customary closing conditions and
the shares are expected to be delivered on April 28, 2021.
The Company has applied to list the Preferred Stock on the
Nasdaq Capital Market under the trading symbol “OCCIO”. The Company
expects the Preferred Stock to begin trading within 30 days from
the original issue date.
The Company expects to receive net proceeds from the offering,
excluding the exercise of the underwriters’ option to purchase
additional shares of Preferred Stock, of approximately $19.2
million, after deducting payment of underwriting discounts and
estimated offering expenses payable by the Company. Assuming the
full exercise of the underwriters’ option to purchase additional
shares of Preferred Stock, the net proceeds will be approximately
$22.1 million, after deducting payment of underwriting discounts
and estimated offering expenses payable by the Company.
The Company intends to use the net proceeds of the offering to
acquire investments in accordance with its investment objectives
and strategies and for general working capital purposes. The
Company may use the net proceeds of the offering to redeem all or a
portion of its outstanding 6.875% Series A Term Preferred Stock due
2024 and 6.60% Series B Term Preferred Stock due 2023.
Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc.,
National Securities Corporation and Incapital LLC are acting as
joint bookrunners for the offering.
Investors are advised to carefully consider the investment
objectives, risks and charges and expenses of the Company before
investing. The preliminary prospectus supplement, dated April 21,
2021, and accompanying prospectus, dated March 2, 2021, each of
which has been filed with the Securities and Exchange Commission,
contain a description of these matters and other important
information about the Company and should be read carefully before
investing.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in this offering or
any other securities nor will there be any sale of these securities
or any other securities referred to in this press release in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under
the securities laws of such state or jurisdiction.
A shelf registration statement relating to these securities is
on file with and has been declared effective by the Securities and
Exchange Commission. The offering may be made only by means of a
prospectus and a related prospectus supplement, copies of which may
be obtained, when available, from the following investment banks:
Ladenburg Thalmann & Co. Inc., Attn: Syndicate Department, 640
Fifth Ave, 4th Floor, New York, NY 10019, or by emailing
prospectus@ladenburg.com (telephone number 1-800-573-2541); B.
Riley Securities, Inc., at 1300 North 17th Street, Suite 100,
Arlington, VA 22209 or by calling (703) 312‐9580 or by emailing
prospectuses@brileyfin.com; National Securities Corporation,
Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York,
New York 10281, telephone: (561) 981-1074 or by email at
prospectusrequest@nationalsecurities.com; and Incapital LLC, Attn:
Syndicate Department, 1800 N Military Trail, Suite 400, Boca Raton,
FL 33431, or by emailing prospectus_requests@incapital.com
(telephone number 1-800-327-1546); copies may also be obtained by
visiting EDGAR on the Securities and Exchange Commission Web site,
at www.sec.gov.
About OFS Credit Company, Inc.
The Company is a non-diversified, externally managed closed-end
management investment company. The Company’s investment objective
is to generate current income, with a secondary objective to
generate capital appreciation primarily through investment in
collateralized loan obligation debt and subordinated securities.
The Company’s investment activities are managed by OFS Capital
Management, LLC, an investment adviser registered under the
Investment Advisers Act of 19401, as amended, and headquartered in
Chicago, Illinois with additional offices in New York and Los
Angeles.
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements,” which relate to future events or our future
operations, performance or financial condition. Forward-looking
statements include statements regarding our intentions related to
the offering discussed in this press release, including the use of
proceeds from the offering. These statements are not guarantees of
future performance, condition or results and involve a number of
risks and uncertainties, including the impact of the global
COVID-19 pandemic and related changes in base interest rates and
significant market volatility on our business, our portfolio
companies, our industry and the global economy. Actual results and
outcomes may differ materially from those anticipated in the
forward-looking statements as a result of a variety of factors,
including those described from time to time in the Company’s
filings with the Securities and Exchange Commission or factors that
are beyond the Company’s control. The Company is providing the
information in this press release as of this date and assumes no
obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
1 Registration does not imply a certain level of skill or
training
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version on businesswire.com: https://www.businesswire.com/news/home/20210421006077/en/
INVESTOR RELATIONS: OFS Credit Company, Inc. Steve Altebrando,
646-652-8473 saltebrando@ofsmanagement.com
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